IDEAS home Printed from
   My bibliography  Save this paper

Heterogeneous returns to income diversification : evidence from Nigeria


  • Bertoni,Eleonora
  • Corral Rodas,Paul Andres
  • Molini,Vasco
  • Siwatu,Gbemisola Oseni
  • Bertoni,Eleonora
  • Corral Rodas,Paul Andres
  • Molini,Vasco
  • Siwatu,Gbemisola Oseni


This paper investigates the impact of income diversification on farming households'welfare in Nigeria on two rounds of the Nigeria General Household Survey-Panel, namely the 2010/2011 and 2012/2013. The study finds that income diversification is the norm in Nigeria, with about 60 percent of farmers diversifying away from subsistence farming into non-farm activities and cash crops. In addition, using the panel of farmers interviewed before and after a severe drought that hit Northern Nigeria in particular in 2011, the study finds that diversification increased throughout Nigeria from 60 to 64 percent and in the North from 58 to 63 percent. The study postulates the existence of heterogeneous returns on diversification as a consequence of the drought, and estimates the returns through a non-parametric selection model using a local instrumental variable. The choice of this model is dictated by the necessity to account for both heterogeneous effects of diversification and selection bias related to households'decision to diversify. Overall, it is found that diversification positively affects consumption in Nigeria. However, who benefits the most is crucially determined by the initial conditions under which diversification is undertaken and the specific agro-climatic context in which households operate.

Suggested Citation

  • Bertoni,Eleonora & Corral Rodas,Paul Andres & Molini,Vasco & Siwatu,Gbemisola Oseni & Bertoni,Eleonora & Corral Rodas,Paul Andres & Molini,Vasco & Siwatu,Gbemisola Oseni, 2016. "Heterogeneous returns to income diversification : evidence from Nigeria," Policy Research Working Paper Series 7894, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7894

    Download full text from publisher

    File URL:
    Download Restriction: no


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:7894. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.